If you didn’t know Bitcoin was highly volatile, you probably do now.
“Throughout the last week we have seen a total wipeout of leverage from the Bitcoin derivatives markets,” Will Clemente wrote as a guest analyst in Friday’s issue of The Pomp Letter on Substack.
All of this helped Bitcoin reach the $50,000 price target set by many crypto investors late last year, even at a time when it was trading at around $25,000.
“The growth rate of Bitcoin was somewhat pegged in 2021 due to the occurrence of the Covid 19 pandemic,” says Mehtap Özdemir, a member of the board at Caizcoin, a decentralized financial solution in Dubai.
“I know several of these early investors who are holding over 1000-fold Bitcoins and if they are not selling to retail banks at $50,000 today,” he says, speculating that they see Bitcoin going much higher, perhaps higher than where Caizcoin in Dubai thinks it is going in the low six digits.
Cryptocurrencies started last week on a much stronger footing than the previous week, though over the weekend Bitcoin traded relatively flat.
Still, based on the Relative Strength Index of the Grayscale Bitcoin ETF, we are nowhere near overbought.
I strongly encourage every new investor to spend half a day on setting up a hardware wallet, make backups of their mnemonic and you will surely be ahead of 90% of the other investors.
I am also a retail investor with interests in cryptocurrencies, so I tend to write about the investing ideas I am considering myself.